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Gold, silver pull back after Putin orders troops back to base

Published 03/04/2014, 04:37 AM
Gold, silver prices weaken after Putin orders troops back to base
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Investing.com - Gold and silver futures declined on Tuesday, after Russian troops reportedly were called back to their bases, signaling an easing of tensions between Russia and Ukraine.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of $1,337.30 a troy ounce. Prices last traded at $1,338.20 an ounce during European morning hours, down 0.9%, or $12.10.

Gold futures rallied to $1,355.00 an ounce on Monday, the most since October 30, before trimming gains to settle at $1,350.30, up 2.17%, or $28.70.

Prices were likely to find support at $1,319.30 a troy ounce, the low from February 28 and resistance at $1,355.00, the high from March 3.

Meanwhile, silver for May delivery dropped 1.15%, or $0.24 cents, to trade at $21.24 a troy ounce. The May contract ended Monday’s session up 1.15%, or $0.24 cents, to settle at $21.48 an ounce.

Silver futures were likely to find support at $21.02 a troy ounce, the low from February 27 and resistance at $21.74, the high from March 3.

Prices of the precious metals weakened as the chance of military conflict in Ukraine eased following reports that Russian President Vladimir Putin ordered troops engaged in military exercises close to Ukraine’s borders to return to base.

Futures rallied sharply on Monday as geopolitical tensions mounted after Russia's parliament authorized President Putin to use military force in Ukraine.

U.S. Secretary of State John Kerry is scheduled to visit Kiev later in the day.

Elsewhere on the Comex, copper futures for May delivery inched up 0.15% to trade at $3.176 a pound, ahead of the start of China’s National People’s Congress annual meeting on Wednesday.

The latest meeting of the legislature, the first to be overseen by President Xi Jinping and Premier Li Keqiang, comes amid lingering concerns over the health of the country’s economy.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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